There are consequences to filing for bankruptcy

There are consequences to filing for bankruptcy

7946993_lThere may come a time when an individual or a business finds themselves in such financial difficulty that a decision must be made to look at the possibilities and ramifications of filing for bankruptcy protection. There are situations of course where filing for bankruptcy may be the only logical course of action, however, bankruptcy must not be taken lightly; it is not the easiest way to get out from under an ever mounting pile of debt. Any Las Vegas Nevada bankruptcy attorney will tell you that there are serious consequences associated with this move; these consequences must be weighed against the benefits.

If you file for bankruptcy you will find it very difficult to obtain credit. Many people are under the false impression that they can file for Chapter 7 bankruptcy and turn right around and get credit. Unfortunately there is an element of truth to this belief; there are many suppliers of credit cards that will offer these high risk individuals a line of credit but at an extortionate interest rate. In most cases a bankrupt will not be in a position to get credit for any major purchase for at least two years or more after they were declared as a bankrupt by the court. If a recent bankrupt was to apply for a home loan within two years, there is little chance of success. If the Las Vegas Nevada bankruptcy attorney arranged for the client to file for Chapter 13 bankruptcy, all debts associated with the filing must be repaid in full and then a further two years is often required to gain access to credit, and then only if the credit history is clean and includes nothing negative.

A bankrupt may also find employment opportunities to be elusive. In most cases anyone who has declared bankruptcy is not eligible to be considered as a director in a company. It may also be impossible for the bankrupt to be considered for local organizations which might be thought of as being helpful in furthering his or her career chances. It’s unfortunate, but the simple act of declaring bankruptcy can greatly reduce the level of confidence that past associates have in the company or the person.

At the very least bankruptcy creates a bad credit stain. For the next six years and nine months at least, and perhaps even as long as ten years the individuals credit score will be negatively impacted regardless of how financially responsible the person is post bankruptcy. When you discuss the options with your Las Vegas bankruptcy attorney you must take everything into account, filing for bankruptcy is the option of last resort.

A Las Vegas bankruptcy attorney is in a position to not only help you with filing bankruptcy but he or she can discuss the consequences of your action and perhaps other courses of action that you can take. You are invited to discuss your situation with the Law Office of Hayes & Welsh – Nevada Attorneys Dedicated to Creditors’ Rights. Visit website for more information.

Be the first to like.